UWL INVESTOR PRESENTATION 1 BUSINESS HIGHLIGHTS FY19 (H2) - PowerPoint PPT Presentation

UWL INVESTOR PRESENTATION 1

BUSINESS HIGHLIGHTS FY19 (H2) Transformation of Uniti Wireless Limited to Uniti Group Limited commenced Listed on ASX, raising $13.2m (excluding costs) Acquired FuzeNet at $10.7m (excluding costs) for less than 3x EBITDA Rationalised existing wireless business and management Expanded management team – Vaughan Bowen and Darryl Inns added Earnings accretive acquisitions of Pivit, Fone Dynamics and Call Dynamics Exceeded prospectus pro forma forecast EBITDA of $2m Now trading EBITDA positive. Exit FY19 run rate $6m Now trading operating cash flow positive after CapEx 2

BUSINESS HIGHLIGHTS FY19 (H2) Substantial cash reserves ($19m) and minimal debt ($2.5m) Improved governance on expenditure and cash payback rules All acquisitions have met earnings accretion expectations Strong board and management team bolstered by acquisitions Announced acquisition of LBNCo which is transformational Committed market support evidenced in June placement and LBNCo funding LBNCo significantly earnings accretive ($10M+ EBITDA(f) in FY20) and future growth contributor Strong pipeline of accretive earnings acquisitions significant cash reserves and debt capability 3

Specialist services that enable full-service teclo Aggressively pursue niche and emerging markets where minimal barriers to entry and competition FINANCIAL FINANCIAL OVE OVERVIEW RVIEW 4

PROFIT & LOSS PROFIT & LOSS Uniti Uniti Uniti Uniti Uniti June run Adjustments (2) Prospectus Statutory (1) Statutory (1) Proforma (3) rate (5) ($000’s) Specialist services that enable full-service Guidance (4) teclo FY2018 FY2019 FY2019 FY2019 FY2019 Aggressively pursue niche and emerging Revenue $4,095 $14,336 $9,041 $23,377 $23,067 $31,584 markets where minimal barriers to entry Gross Margin $2,754 $7,717 $2,864 $10,581 $10,283 $15,756 and competition Gross Margin % 67.3% 53.8% 45.3% 44.6% 49.9% Remuneration ($2,906) ($9,297) $2,686 ($6,611) ($7,008) Other SGA ($1,760) ($3,919) $1,998 ($1,921) ($2,748) EBITDA ($1,912) ($5,499) $7,548 $2,049 $2,052 $6,000 EBITDA % -46.7% -38.4% 8.8% 8.9% 19.0% Depn & Amortisation ($2,064) ($5,753) ($5,753) Impairment (ROUA) $0 ($1,407) ($1,407) Interest & Tax ($825) ($872) ($872) NPAT ($4,801) ($13,531) $7,548 ($5,983) Note 1: Statutory accounts, as per the Annual Report released 30 August 2019 Note 3: Uniti proforma accounts, after adjusting for the proforma adjustments detailed in note 2, Note 2: Adjustments made to the 2019 statutory accounts including: above 1) Proforma FuzeNet accounts, to include Jul-18 to Jan-19 profit & loss, Note 4: Uniti proforma guidance contained with the prospectus dated 16 January 2019 2) less June 19 results for Fone Dynamics and Call Dynamics acquisitions, Note 5: Uniti June run rate is the normalized June profit & loss, annualised 3) less June 19 contribution from the Pivit customer acquisition, 4) add back Share Based Payment expenses, 5) add back IPO and Acquisition costs and 6) add back restructuring provision 5

BALANC BALANCE E SHEE SHEET Balance sheet includes businesses acquired during the financial year Cash at bank has increased due to the business now cash positive Uniti Group Ltd ($000’s) Cash at bank includes $14.7m (net of fees) from placement on 5 FY2019 FY2018 Cash at bank $19,131 $847 June 2019 Trade recievables $1,507 $619 Net current tangible assets at $17.3m, strengthening position Other current assets $1,707 $222 from negative $12k Trade & other payables ($4,905) ($1,325) Deferred settlement includes payments outstanding for Fone Other current liabilities ($175) ($375) Dynamics ($8.4m) and Call Dynamics ($630k) Net current tangible assets $17,265 ($12) Property, plant & equipment $3,589 $5,082 Deferred consideration consists of $630k to be paid in cash, and Deferred settlement & borrowings ($12,990) ($209) $8.4m to be settled in issue of shares Net tangible assets $7,864 $4,861 Borrowings include loan from SA Govt of $2.5m Intangible Assets $25,384 $8,108 Intangible assets include goodwill of $20.5m and Right of Use Intangible liabilities ($7,378) ($9,635) assets of $4.9m Net assets $25,870 $3,334 Equity $25,870 $3,334 Intangible liabilities include ROUL – lease commitments for rental of tower locations 6

CASH CASH FLOW FLOW The cash flow shows the split of the first half cash flow (1H), with the second half (2H) ($000’s) 1H 1H 2H 2H FY2019 FY2018 2H shows the operating cash flow improved to a Receipts from customers $3,229 $11,804 $15,033 $4,361 positive $2m, up from negative $1.8m Payments to suppliers and employees ($5,632) ($10,294) ($15,926) ($5,586) 2H receipts and payments includes FuzeNet, Finance costs and Other $619 $528 $1,147 ($825) acquired on 1 February 2019. Operating cash flows ($1,784) $2,038 $254 $254 ($2,050) Capex ($1,432) ($384) ($1,816) ($3,887) CAPEX has been reduced to a lower level in the Free Cash Flow ($3,216) $1,654 ($1,562) ($5,937) 2H, resulting in a positive FCF of $1.7m Investing activities ($1,618) ($9,027) ($10,645) $0 Investing activities includes the FuzeNet Financing activities $5,008 $25,483 $30,491 $6,282 Net increase / (decrease) in cash $174 $174 $18,110 $18,284 $345 $345 acquisition Financing activities includes the IPO raise, as well Opening balance $847 $847 $1,021 $847 $847 $502 $502 Closing balance $1,021 $19,131 $19,131 $847 $847 as the placement ($14.7m – net of fees) Cash balance increased by $18.3m, to a closing balance of $19.1m 7

PROFIT & LOSS ( PROFIT & LOSS (Proforma) Proforma) Specialist services that enable full-service teclo Uniti. Uniti. Uniti LBN Co LBN Co Aggressively pursue niche and emerging Combined Uniti Forecast Combined (Proforma) (Proforma) (Proforma) Forecast ($000’s) markets where minimal barriers to entry FY2017 FY2018 FY2019 FY2019 FY2019 FY2020 FY2020 FY2020 and competition Revenue $14,680 $18,762 $23,377 $17,368 $40,745 $37,949 $19,424 $57,373 Gross Margin $5,475 $8,550 $10,581 $14,135 $24,716 $18,806 $15,997 $34,803 Gross Margin % 37.3% 45.6% 45.3% 81.4% 60.7% 49.6% 82.4% 60.7% Remuneration ($3,098) ($4,488) ($6,611) ($4,918) ($11,529) ($8,964) ($4,734) ($13,698) Other SGA ($1,558) ($2,698) ($1,921) ($996) ($2,917) ($3,342) ($1,155) ($4,497) EBITDA $819 $819 $1,364 $2,049 $8,221 $10,270 $6,500 $10,108 $16,608 EBITDA % 5.6% 7.3% 8.8% 47.3% 25.2% 17.1% 52.0% 28.9% Note 1: Uniti (Proforma) accounts for FY17, FY18 & FY19 includes full year results for FuzeNet (acquired 1 February 2019) Note 2: The results are prepared to an underlying basis, excluding non-operating costs for the Uniti and LBN Co businesses Note 3: LBN Co FY19 & FY20 results have been reduced in line with due diligence results, and are lower than the budget produced by LBN Co management Note 4: LBN Co FY20 results do not include any contribution from 3 acquistions, just acquired by LBN Co. Note 5: The combined results are an addition of the 2 businesses, and do allow for any intercompany eliminations on consolidation 8

BALANCE BALANC E SHEE SHEET T (Profor (Proforma) ma) Proforma Balance sheet 2019 2019 Specialist services that enable full-service ($000’s) UWL LBN Adjustments Proforma teclo Cash 19,131 3,084 5,141 27,356 Aggressively pursue niche and emerging Debtors 1,507 2,908 0 4,415 markets where minimal barriers to entry Other 1,707 681 0 2,388 and competition Fixed Assets 3,589 31,407 0 34,996 Intangibles 25,384 5,475 65,394 96,253 TOTAL ASSETS 51,318 43,555 70,535 165,408 Creditors 4,668 2,631 0 7,299 Other current liabilities 8,164 376 0 8,540 Bank Loans 2,460 15,665 -15,665 2,460 Non-current liabilities 10,156 1,780 0 11,936 TOTAL LIABILITIES 25,448 20,452 -15,665 30,235 NET ASSETS 25,870 23,103 86,200 135,173 Equity Issued capital 46,691 24,000 86,200 156,891 Reserves 1,283 151 0 1,434 Retained profits -22,104 -1,048 0 -23,152 TOTAL equity 25,870 23,103 86,200 135,173 9

Specialist services that enable full-service teclo Aggressively pursue niche and emerging markets where minimal barriers to entry and competition THE THE FUTU FUTURE RE 10

STRATEGIC STRATE GIC GROWTH AGENDA: T GROWTH AGENDA: THREE HREE PILLA PILLARS RS Wireless Networks Broadband/Fibre Specialist Services ▪ Wireless infrastructure network Fuzenet Fuz Fon one Dyna ynamics cs owner/operator and broadband Enabler of LBNCo’s largest retail service ▪ ▪ Focusing on modern inbound voice and provider with proven high speed provider business-grade SMS services performance ▪ Portfolio of voice and data products differentiated by quality data and call ▪ Alternative solution to NBN tracking analytics LBNC NCo ▪ Connecting residential, business and Call all Dyna ynamics ▪ Fibre & wireless infrastructure network enterprise customer premises through owner/operator and broadband ▪ Focusing on modern inbound voice Uniti’s ‘last mile’ network provider with proven high speed services with limited call tracking performance solutions ▪ Alternative solution to NBN ▪ Connecting residential, business and enterprise customer premises through ‘last mile’ network 11

AMPLIFIED GRO AMPLIFIED GROWTH WTH STR STRATE ATEGY GY Specialist services that enable full-service teclo Aggressively pursue niche and emerging markets where minimal barriers to entry and competition 12